Sears Holdings Corp NASDAQ: SHLD stock continues its downward spiral on Tuesday, falling over 2.41% less than an hour after the opening bell. The retailer’s struggles continue to mount after a comment from CEO Eddie Lampert sent the company’s stock down 12.43% on Monday.
Lampert wrote a blog post on the company website attacking a vendor, One World, stating that the vendor is trying to take advantage of the struggling company. The post states that One World has threatened to file a lawsuit against Sears and aims to embarrass the company in the media.
The post suggests that the supply is making threats to get out of their contract.
Sears has paid One World over $868 million since 2007, according to the post. The China-based company reportedly has over $5 billion in revenue.
One World, a subsidiary of Techtronic Industries, is the maker of the Craftsman brand of tools. The supplier has threatened to terminate their contract with Sears. Lampert states that Sears purchased over $13 billion a year in goods and services, and has always met their payment obligations.
Sears Holdings Corp NASDAQ: SHLD Files Lawsuit
Sears Holdings Corp NASDAQ: SHLD filed a lawsuit against One World in Cook County, Illinois. They filed shortly after the blog post was published.
Lampert has worked to turnaround the Sears brand. Sears Holdings Corp NASDAQ: SHLD has lost $10 billion since 2012. It has remained in business through the sale of key assets and stores. Lampert has provided loans to Sears to help the company stay afloat. The retailer also sold their Craftsman brand and other businesses to help fund the company’s turnaround.
The CEO accuses the recent predictions of the company’s demise as hurting the company’s future and current business.
“But, as I explained last week, there have been examples of parties we do business with trying to take advantage of negative rumors about Sears to make themselves a better deal – a deal that is unilaterally in their interest” said Lampert.